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Entrepreneurial Learning: Past Research and Future Challenges

Catherine L. Wang

Professor of Strategy and Entrepreneurship

School of Management, Royal Holloway, University of London

Egham Hill, Egham, TW20 0EX, United Kingdom

Tel: +44 (0)1784 414299

Email: Catherine.Wang@rhul.ac.uk

Harveen Chugh

Lecturer in Entrepreneurship and Strategy

School of Management, Royal Holloway, University of London

Egham Hill, Egham, TW20 0EX, United Kingdom

Tel: +44 (0) 1784 276287

Email: Harveen.Chugh@rhul.ac.uk

This article is dedicated to Dr. Jason Cope, a much valued colleague.

Acknowledgements: We thank Jason Cope, Mark Easterby-Smith, Yiannis Gabriel, Ossie

Jones, David J. Ketchen, Alice Lam, David Rae and Paul Robson for their comments on our

paper. A previous version of the paper was presented at the Babson College Entrepreneurship

Research Conference 2010 and the British Academy of Management Entrepreneurial

Learning and Education Research Seminar 2011, and we thank the participants for their

comments. Finally, we thank the editor, Ossie Jones, and three reviewers for their detailed

and constructive comments.

Wang, C. L. and Chugh, H. (2014), Entrepreneurial learning: past research and future

challenges. The International Journal of Management Reviews, 16(1), 24-61.

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Entrepreneurial Learning: Past Research and Future Challenges

SUMMARY

Entrepreneurial learning (EL) has emerged as an important concept at the interface of

entrepreneurship and organisational learning. Although EL research has gained momentum in

the past decade, the literature is diverse, highly individualistic and fragmented, hindering the

development of EL as a promising research area. In this article, we first conduct a systematic

analysis of the EL literature in order to take stock of the theoretical and empirical

development and identify research themes and developmental patterns of EL research.

Second, we discuss three pairs of key learning types that deserve more attention in future

research, namely individual and collective learning, exploratory and exploitative learning,

and intuitive and sensing learning. These learning types correspond to three key challenges

that are derived from the EL research gaps identified in our systematic literature analysis, and

provide fruitful avenues for future research. Third, by exploring the three pairs of learning

types, we draw further insights from entrepreneurship and organisational learning to help to

advance EL research, and also feed back to the entrepreneurship literature by discussing how

these learning types can help to understand the challenges at the centre of debate in the

entrepreneurship literature.

Key words: Entrepreneurial learning, systematic literature review, conceptual development

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INTRODUCTION

Entrepreneurial learning (EL) has emerged as a promising area of research at the

interface between learning and the entrepreneurial context (Harrison and Leitch 2005).

Central to EL research are issues pertinent not only to what entrepreneurs should, or do learn

during the process of exploring and exploiting an entrepreneurial opportunity in the creation

of new ventures or management of existing firms, but more importantly, the specific

processes of learning that take place (Cope 2005). Simply put, how learning takes place and

when learning takes place is fundamental to our understanding of the entrepreneurial process.

As Minniti and Bygrave (2001, p.7) assert, “entrepreneurship is a process of learning, and a

theory of entrepreneurship requires a theory of learning.”

EL research has flourished in the past decade, and demonstrates several

characteristics. First, whilst EL is broadly positioned at the interface of entrepreneurship and

organisational learning, existing studies have drawn from a wide range of theoretical insights,

including experiential learning (e.g. Minniti and Bygrave 2001; Cope 2003; Clarysse and

Moray 2004), organisational learning (e.g. Lant and Mezias 1990; Covin et al. 2006; Wang

2008), social cognitive theory (i.e. Erikson 2003), population ecology (i.e. Dencker et al.

2009), and configuration theory (i.e. Hughes et al. 2007), employing different methods to

study different entrepreneurial contexts. While this may signal the vivacity of the field, it is

important to take inventory of the work to date through a systematic literature review and

identify key research themes and developmental patterns to provide an overview of EL

literature for further research to build on.

Second, accompanying the characteristic of diversity of EL research is its highly

individualistic and fragmented nature, resulting in incongruence in many aspects of EL, such

as its definitions. For example, although EL is often referred to as learning in the

entrepreneurial process (Ravasi and Turati 2005; Politis 2005; Holcomb et al. 2009), its

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definitions span from “venture learning” (Berglund et al. 2007, p.178), “learning to recognise

and act on opportunities, and interacting socially to initiate, organise and manage ventures”

(Rae 2005, p.324), to “the variety of experiential and cognitive processes used to acquire,

retain and use entrepreneurial knowledge” (Young and Sexton 2003, p.156). While we

recognise that the diversity, individuality and inconsistency reflects individual researchers’

epistemological, ontological and methodological background, it is important to take stock of

the EL literature and identify the key research gaps and challenges for future research.

Third, the rise of EL research has revitalised entrepreneurship research by focusing on

the learning and developmental process of entrepreneurship (Deakins 1996), and who an

entrepreneur may become through learning (Cope 2005; Rae 2000). As Cope (2005, p.379)

commented, “it is through learning that entrepreneurs develop and grow.” This responds to

the failure of past entrepreneurial research on traits, which was unsuccessfully preoccupied

with “who an entrepreneur is” and precluded an entrepreneur’s ability to learn, develop and

change (Gartner 1988). However, more research is needed to understand the role of learning

in entrepreneurship (Blackburn and Kovalainen 2009), how EL can help to understand the

key challenges in the entrepreneurship literature, and to cross-fertilise the entrepreneurship

and organisational learning literatures.

This study aims to help to fill the about three research gaps by focusing on three key

objectives. First, we conduct a systematic analysis of the EL literature in business and

management studies to take stock of the theoretical and empirical development and identify

EL research themes and developmental patterns. In particular, our systematic literature

review is based on pre-defined themes often used in traditional and systematic literature

reviews to elicit developmental patterns in terms of publication distribution, theoretical

perspectives, EL definitions, types of learning, entrepreneurial contexts, and methods and

unit of analysis. We aim to provide an overview of the EL research and a foundation for

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future researchers to build on. As Low and MacMillan (1988) argue, a periodical review of a

particular field is necessary for deriving maximum benefit from future research. Second, we

discuss three pairs of learning types that deserve more attention in future research, namely

individual and collective learning, exploratory and exploitative learning, and intuitive and

sensing learning. These learning types correspond to the key EL research gaps identified in

our systematic literature review as well as the key challenges at the centre of debate in the

entrepreneurship literature, providing fruitful avenues for future research. We follow the

paths of Gibb Dyer (1994) and Cope (2005) and aim to identify key challenges that help to

direct future EL research towards more fruitful research avenues. Third, through exploring

the three pairs of learning types and the key challenges that correspond to the learning types,

we draw further insights from entrepreneurship and organisational learning to advance EL

research. We also feed back to the entrepreneurship literature by discussing how these

learning types help to understand the key challenges in entrepreneurship. Therefore, this

paper helps to further cross-fertilise the entrepreneurship and organisational learning

literatures as well as advancing EL research. In sum, our main aim is to take stock of EL

research to provide a foundation for future EL research to proliferate and prosper, whilst

recognising its current diversity and individuality.

METHODS

We conducted a systematic literature review (SLR) of EL following the suggestions

of Tranfield et al. (2003), Denyer and Tranfield (2008) and Macpherson and Jones (2010).

SLRs have advantages over traditional, ad-hoc literature reviews as they enhance: (1) the

validity of a review by providing a clear set of steps that can be followed if the study were to

be replicated (Denyer and Neely 2004; Thorpe et al. 2006); (2) the rigour of a review by

providing systematically generated evidence supporting the arguments closely related to the

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research questions (Pittaway et al 2004; Thorpe et al. 2006); and (3) the generalisability of

the results by allowing the accumulated knowledge in the field to be systematically

synthesised and analysed. Despite these benefits, SLRs do also have some limitations. For

example, the conceptual boundaries set to guide the SLR may be construed as rigid as they do

not allow room for any exceptions to be made to the inclusion or exclusion of articles. It

could also be that the strict search terms set to identify relevant articles may well exclude an

article which has a poorly written abstract where keywords are missed out (Pittaway et al.

2004). Taking the above into account, we follow Lee (2009) and Rashman et al. (2009) and

consider SLR as a ‘guiding tool’, which allows us to shape the review according to our

research focus and objectives (see Figure 1), rather than an orthodox methodology with a

concrete set of rigid rules. Figure 1 shows a summary of the SLR process.

“Insert Figure 1 here”

Conceptual Boundaries

Our SLR process started with our research objectives and setting conceptual

boundaries (Denyer and Tranfield 2008) (see Figure 1). We started with a broad definition of

EL as “learning in the entrepreneurial process” (Ravasi and Turati 2005; Politis 2005;

Holcomb et al. 2009). We defined the entrepreneurial process as “the process by which

individuals - either on their own or inside organizations - pursue opportunities without regard

to the resources they currently control” (Stevenson and Jarillo 1990, p.23). ‘Entrepreneurial

opportunities’ is one of the key concepts that define the scope and boundaries of

entrepreneurship (Busenitz et al. 2003; Buenstorf 2007). Research has widely cited Eckhardt

and Shane’s (2003, p.336) definition developed from Casson (1982) and Shane and

Venkataraman (2000): “entrepreneurial opportunities as situations in which new goods,

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services, raw materials, markets and organizing methods can be introduced through the

formation of new means, ends, or means-ends relationships.” Similarly, Dutta and Crossan

(2005, p.426) define entrepreneurial opportunities as “being a set of environmental conditions

that lead to the introduction of one or more new products or services in the marketplace by an

entrepreneur or by an entrepreneurial team through either an existing venture or a newly

created one.” 

Opportunity exploration (also discovery, recognition, or development) and

opportunity exploitation are widely recognised as the two generic, heterogeneous processes

of entrepreneurship (Stevenson and Jarillo 1990; Shane and Venkataraman 2000).

Specifically, opportunity exploration entails the search for information leading to the creation

of new knowledge (Alvarez and Busenitz 2001), whilst opportunity exploitation requires a

firm to commit resources in order to build efficient business systems for full-scale operations

for producing, and gaining returns from, the new product arising from the opportunity (Choi

and Shepherd 2004). It is individual or organisational attitude towards an entrepreneurial

opportunity and their behavioural orientation in terms of exploring and exploiting an

entrepreneurial opportunity that set an entrepreneur apart from a non-entrepreneur (such as a

manager or a technician) and an entrepreneurial firm from a non-entrepreneurial firm (if we

view ‘entrepreneurial’ as a spectrum ranging from entrepreneurial to non-entrepreneurial,

rather than a bi-polar construct). In particular, although a new venture creation stage

generally involves the pursuit of an entrepreneurial opportunity, not all small firms once in

full operation are entrepreneurial. For example, Chaston (2009) refers to two types of non-

entrepreneurial small firms proposed by Storey and Sykes (1996): lifestyle firms that serve to

provide their owner-managers with an income sufficient to finance their desired lifestyle (e.g.

artists creating a craft business), and operationally constrained firms whose opportunities are

limited by supply over demand, intense competition and low-skilled operations (e.g. small

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independent convenient stores and takeaways). For conceptual clarification, only

entrepreneurial firms (being small, medium or large; new or established) involved in the

exploration and exploitation of an entrepreneurial opportunity are within the remit of this

study.  

The literature has primarily focused on the following entrepreneurial contexts in

which an entrepreneurial opportunity is explored and exploited: (a) opportunity exploration

and exploitation in start-up entrepreneurship or new venture creation (SE). As new venture

creation is central to entrepreneurship (Ireland et al. 2005), research has studied how an

entrepreneurial opportunity is explored and exploited in the process of new venture creation;

(b) opportunity exploration and exploitation in established firms (EE), including small and

medium-sized businesses and large corporations. Since entrepreneurship is not necessarily

constrained in the new venture creation stage, but may span throughout the life cycle of the

firm (Reuber and Fischer 1999), research has studied how an entrepreneurial opportunity is

explored and exploited in established firms; and (c) opportunity exploration and exploitation

in general entrepreneurship (GE), that is, without specifying if this takes place in start-up or

established firms. These three entrepreneurial contexts are defined as mutually exclusive to

enable us to categorise EL articles in the Data Collection and Analysis sub-section next.

 

Data Collection and Analysis 

To build a comprehensive database of EL articles (Appendix 1), we applied the

following inclusion criteria (see Appendix 2 for the detailed rationale). First, we set our

search boundary within academic journal articles listed in the Association of Business

Schools (ABS) Academic Journal Quality Version 4 by Subject Area (Kelly et al. 2010).

Second, we focused on articles published in ABS ranked journals listed in the following

categories of the business and management discipline: ‘Entrepreneurship and Small Business

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Management’ as the primary source of our literature search; and ‘General Management’,

‘Strategic Management’, ‘Organization Studies’, ‘Innovation’, and ‘Management

Development and Education’ as our secondary literature sources, since these categories

include journals that occasionally publish entrepreneurship research. To increase coverage of

the journals that were searched and to ensure that all relevant articles were included in the

study, we also selected journals from additional Subject Areas listed in Appendix 2. Third,

within these journals, we conducted searches using the electronic databases Business Source

Complete, Science Direct, JSTOR, and Wiley Online Library, covering the period up to and

including August 2012. We searched the Title and Abstract fields using the primary Boolean

search terms of ‘entrepreneur* AND learn*’, and the secondary search term of ‘opportunity

AND learn*’ to identify all articles within our conceptual boundaries. These search terms are

sufficiently inclusive to capture most relevant articles within our conceptual boundaries, and

exclusive enough to eliminate less relevant articles. This process resulted in 158 articles.

Among these articles, 83 articles contained our key search terms but did not focus on or

provide a meaningful discussion on learning in the entrepreneurial process, so were excluded

from our analysis following the exclusion criteria listed in Appendix 2. The exclusion process

resulted in a total of 75 academic journal articles (52 empirical and 23 conceptual articles)

that were included in our final analysis. Fourth, to mitigate the potential risks of excluding

key articles due to the rigidity of the SLR, we conducted an independent literature search in

Google Scholar to triangulate the results of our main literature search. We searched for

articles containing the exact phrase ‘entrepreneurial learning’ in Google Scholar up to and

including August 2012; the search retrieved 3700 items. Comparing the top 75 items with the

75 papers included in our SLR, we found that 27 of the papers in our analysis were included

in the top 75 Google search items; a 36% match. The remaining 48 items (from the top 75

items of the Google Scholar search) included working papers, non peer-reviewed articles,

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articles in journals that did not fall within our search criteria such as from economics and

marketing, and articles that had fallen under our exclusion criteria (see Appendix 2), for

instance, articles that focused on learning in the contexts of entrepreneurship education,

teaching and training.

The following thematic codes commonly used in literature analyses were used to code

the articles in Appendix 1: (1) Name(s) of the authors; (2) Year of publication; (3) Country of

authors’ institution(s) at time of publication; (4) Journal title; (5) Theoretical perspective(s);

(6) Definition of EL; (7) Entrepreneurial context (as previously defined); (8) Types of

learning (or learning mechanisms or styles); (9) Methods; and (10) Unit of analysis. The

articles were manually coded based on these pre-defined themes. Manual coding was used

because the articles required careful reading and identification of relevant areas related to the

pre-defined themes. For example, the theoretical perspectives, EL definitions, entrepreneurial

contexts and the unit of analysis were not explicitly stated in some articles (examples will be

provided in the Literature Analysis section). Therefore, careful reading and expert judgement

was required. To triangulate the coding, both authors independently read and coded based on

these pre-defined themes and recorded data from each article. Any differences in the coding

and recording were discussed between the authors, and the articles were re-visited until

agreement was reached. This process ensured a high degree of inter-rater reliability. Our

approach to analysing the literature was to some extent similar to Pittaway et al. (2004),

Rashman et al. (2009) and Lee (2009) in that our emphasis was to provide conceptual clarity,

elucidate themes and patterns of past research and identify research gaps which deserve more

attention.

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LITERATURE ANALYSIS: THEMES AND TRENDS

Our analysis is based on a total of 75 articles (see Appendix 1). The analysis follows

the thematic codes mentioned above, focusing on the key themes and trends in the literature.

This leads to the identification of three key challenges of EL research, which in turn

correspond to the key challenges within the entrepreneurship literature.

Publication Distribution

This section reports three key findings from the analysis of the thematic codes 1-4 ((1)

Name(s) of the authors; (2) Year of publication; (3) Country of authors’ institution(s) at time

of publication; and (4) Journal title). First, there has been a sharp increase of scholarly

interest in EL since 2000 (see Figure 2). The 2005 Special Issue of Entrepreneurship Theory

and Practice (ET&P) is a key contributor to the growth as 7 of the articles in our analysis

were from this issue. Second, the key publication outlets include the US-based ET&P (18

articles), and Journal of Business Venturing (JBV) (7 articles); and the UK-based

International Journal of Entrepreneurship Behaviour & Research (IJEB&R) (7 articles), and

Journal of Small Business and Enterprise Development (JSB&ED) (7 articles). The

conceptual development by Minniti and Bygrave (2001) and the Special Issue on EL edited

by Harrison and Leitch (2005) have been particularly influential in shaping EL research.

Among 61 articles published after 2001, 23 reference Minniti and Bygrave (2001), while

among 43 articles published after 2005, 14 reference Harrison and Leitch (2005). Third, it is

evident that research collaboration (as indicated by co-authorship) has largely been within the

same country or region and very little collaboration exists between North American and

European researchers with few exceptions (e.g. Schildt et al. 2005; Gruber et al. 2008;

Dencker et al. 2009). Although there is a small percentage of European-based authors

published in ET&P (5 out of 18 articles) and JBV (4 out of 7 articles), the authors publishing

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in JSB&ED and IJEB&R are all European-based (with the only exception of Erikson, 2003,

who was affiliated with both Norway and the US). The overall analysis of publication

distribution shows that EL research has gained momentum in the past decade, with the North

American and European research in two camps in terms of publication outlets. We will

further discuss this point in the summary of this section.

“Insert Figure 2 here”

Theoretical Perspectives

EL research has drawn on a wide range of theoretical perspectives (see Appendix 1).

Specifically, two theoretical perspectives play a dominating role. First, several articles build

on experiential learning (i.e. Lamont 1972; Minniti and Bygrave 2001; Cope 2003; Clarysse

and Moray 2004; Corbett 2005, 2007; Dimov 2007; Politis and Gabrielsson 2009; Lévesque

et al. 2009). These studies have largely drawn on the work of Kolb (1976, 1984, 1985, 1999)

and his colleagues (e.g. Kolb and Kolb 2005; Kolb et al. 1984; Kolb et al. 1995; Kolb and

Kolb 2001). Second, several articles have drawn on theories of organisational learning,

including exploratory and exploitative learning (March 1991), single- and double-loop

learning (Argyris and Schön 1978), organisational learning (consisting of four constructs:

knowledge acquisition, information distribution, information interpretation, and

organisational memory) (Huber 1991), absorptive capacity and external learning (Cohen and

Levinthal 1990; Zahra and George 2002; Jones 2006), the fifth discipline of the learning

organisation (Senge 1990), higher-level or lower-level learning (Fiol and Lyles 1985), and

organisational learning in terms of information processing and decision-making (Cyert and

March 1963; Levitt and March 1988; March and Simon 1958; March and Olsen 1975, 1976)

(see Appendix 1). Organisational learning theory has been applied to EL studies in a wide

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variety of ways, for example, whether entrepreneurial firms use higher-order learning

(Chaston et al. 2001), how the theory of organisational learning helps to conceptualise

entrepreneurship (Lant and Mezias 1990), and how intentionality drives opportunity

development from the organizational learning perspective (Dimov 2007). Several authors

(e.g. Covin et al. 2006; Wang 2008; Zhao et al. 2011) study learning in corporate contexts

and find that entrepreneurship research benefits from the application of organisational

learning theory (Dutta and Crossan 2005). However, very little insight exists to advance the

conceptualisation of EL, especially how organisational learning processes differ in

entrepreneurial firms from non-entrepreneurial firms. We discuss how EL can draw further

insights from organisational learning theory in the next section.

Definitions of Entrepreneurial Learning

While 47 of the 75 articles used the term ‘entrepreneurial learning’ (see Appendix 1),

the remaining 28 articles refer generally to learning in the entrepreneurial process and do not

provide a definition of EL. Of the 47 articles that do use the term ‘entrepreneurial learning’,

11 articles define EL explicitly, 10 articles define EL implicitly, and the remaining 26 articles

do not define EL either explicitly or implicitly. These definitions are incongruent and include

“venture learning” (Berglund et al. 2007), learning that “informs the entrepreneur’s quest for

new opportunity” (Franco and Haase 2009, p.634), “how entrepreneurs accumulate and

update knowledge” (Minniti and Bygrave 2001, p.8), “learning to work in entrepreneurial

ways” (Rae 2000, p.151), and “learning experienced by entrepreneurs during the creation and

development of a small enterprise, rather than a particular style or form of learning that could

be described as ‘entrepreneurial’ ” (Cope 2005, p.374). The definitions reflect a wide range

of focuses such as learning by the venture team (Berglund et al. 2007), the learning processes

involved in the development of a new venture (Ravasi and Turati, 2005), learning

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experienced by entrepreneurs (Cope 2003; Cope and Watts 2000), what, how and why

entrepreneurs learn (Parker 2006), recognising and acting on opportunities (Rae 2006), and a

process related to knowledge acquisition, assimilation and organisation (Holcomb et al. 2009;

Minniti and Bygrave 2001; Politis 2005). These definitions demonstrate the different frames

of reference that researchers have applied to understanding EL. However, a closer

examination of these definitions reveals that they are primarily related to what and how

individual entrepreneurs learn, with exceptions of very few papers studying team or

organisational level learning or beyond. In other words, little is known about how collective

learning takes place in entrepreneurial teams or firms. Overall, there is a general lack of

consensus on what EL is and EL at the organisational level is under-researched. We discuss

individual and collective learning in the next section.

Types of Learning

In this section, we analyse the learning mechanisms utilised in EL research.

Experiential learning, in addition to being applied as a theoretical lens for EL, is widely

referred to as a mechanism for learning in 32 out of 75 articles. Among the 32 articles, 14

draw from the work of Kolb (1984) (e.g. Cope 2005; Politis 2005; Corbett 2005, 2007;

Dimov 2007) (see Appendix 1). Experiential learning in the remaining articles does not refer

to Kolb and his colleagues’ work, but to ‘learning-by-doing’ (Cope 2003; Balasubramanian

2011), learning from past business experience (Lamont 1972), learning from positive and

negative experiences (Minniti and Bygrave 2001), learning from past experience (Rerup

2005; Sardana and Scott-Kemmis 2010), and learning from participation and from the

experience of others (i.e. vicarious learning) (Lévesque et al. 2009). In addition, several

individual or organisational learning theories have been used to understand the

entrepreneurial process: (1) March’s (1991) exploratory and exploitative learning (cited by 22

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articles); (2) Argyris and Schön’s (1978) single-loop/adaptive and double-loop/generative

learning (21 articles); (3) Huber’s (1991) organisational learning (22 articles); (4) Cohen and

Levinthal’s (1990) absorptive capacity and external learning (16 articles) and Zahra and

George’s (2002) reconceptualisation of absorptive capacity (8 articles); (5) situated learning

and communities of practice by Lave and Wenger (1991) and Wenger (1998) (8 articles and 5

articles respectively) and Brown and Duguid’s (1991) work in the same area (8 articles); (6)

Senge’s (1990) the fifth discipline of the learning organisation (16 articles); (7) Fiol and

Lyles’s (1985) higher-level or lower-level learning (11 articles); and (8) organisational

learning in terms of information processing and decision-making include the work by Cyert

and March (1963) (10 articles), Levitt and March (1988) (9 articles), March and Simon

(1958) (3 articles), March and Olsen (1975) (2 articles), and March and Olsen (1976) (2

articles). There is a need to understand the respective roles and contributions of different

types of learning in the advancement of EL research, which we discuss in the next section.

Entrepreneurial Context

In this section, we report our analysis of EL research with particular reference to the

‘entrepreneurial context’ as defined in the Methods section. First, 21 articles fall under the SE

context (start-up entrepreneurship). Within this context, the research focus spans independent

new start-ups (e.g. Nicholls-Nixon et al. 2000; Honig 2001; Huovinen and Tihula 2008;

Karataş-Özkan 2011), university spin-offs (Clarysse and Moray 2004) and start-ups in

incubators (Hughes et al., 2007). These articles primarily focus on individual learning in

start-up entrepreneurship. Given the prominence of teams in the start-up process (Timmons

and Spinelli 2006), there is a scarcity of research on learning in the process of forming a

founding team (with very few exceptions, such as Karataş-Özkan 2011).

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Second, 23 articles fall under the EE context (entrepreneurship in established firms)

(Table 1). Among these articles, there is a relatively balanced focus on small, medium, or

large-sized firms: for example, Cope (2003) studied the effect of discontinuous events on

learning outcomes in the context of small business management and growth; Schildt et al.

(2005) examine the antecedents of exploratory versus exploitative learning from external

corporate ventures in large firms; and Lee and Williams (2007) focus on dispersed

entrepreneurship in large multinational corporations. In particular, studies in the EE context

have already started to explore how the learning process and the entrepreneurial process

interact to have impact on firm performance (e.g. Covin et al. 2006; Hughes et al. 2007;

Wang 2008; Rhee et al. 2010; Zhao et al. 2011). For example, it has been found that firms

cannot sustain dual-dominant orientations of exploitative learning and entrepreneurial

orientation (Hughes et al. 2007), a learning orientation must be in place in order to realise the

effect of entrepreneurial orientation on firm performance (Wang 2008), and learning from

strategic mistakes may be of particular value to conservative firms than to entrepreneurial

firms (Covin et al. 2006).

Third, 30 out of 75 articles fall in the GE context (general entrepreneurship) without

reference to start-up or established firms. These include: (a) 4 articles that primarily focus on

the general process of opportunity exploration (discovery, recognition, and development) (i.e.

Lumpkin and Lichtenstein 2005; Politis 2005; Sanz-Velasco 2006; Corbett 2005, 2007;

Dimov 2007); (b) 4 articles that deal with both exploration and exploitation despite more

emphasis on exploration (i.e. Rerup 2005; Dutta and Crossan 2005; García-Cabrera and

García-Soto 2009). For instance, Dutta and Crossan (2005) provide an insightful 4I

framework for understanding different learning processes involved in opportunity discovery

and exploitation, but their emphasis primarily lies in the exploration process at the level of

individual entrepreneurs. The only article that explicitly deals with the different needs of

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opportunity discovery and exploitation is Rerup (2005), which compares the influence of

entrepreneurs’ prior experience on opportunity discovery and exploitation; (c) 17 articles that

specifically emphasise how individual entrepreneurs learn to explore and exploit

opportunities, although with no reference to any specific entrepreneurship context (e.g. Rae

and Carswell 2001; Minniti and Bygrave 2001; Young and Sexton 2003; Parker 2006;

Thorpe et al. 2006; Lévesque et al. 2009); and (d) 4 articles that do not specify any

entrepreneurial context and 1 editorial for a journal special issue (Harrison and Leitch 2005).

We discuss the need for understanding learning in opportunity exploration and exploitation in

the next section.

Methods and the Unit of Analysis

In this section, we report on the methods and unit of analysis employed by the studies.

The studies employ a wide range of methods ranging from case studies and surveys to mixed

methods studies (see Methods column in Appendix 1). When examining the methods and unit

of analysis in connection with the entrepreneurial context (see Table 1), we found that across

the three entrepreneurial contexts 43 out of 75 articles focus on ‘individuals’ or

‘entrepreneurs’ as the unit of the analysis and 27 focus on firm-level analysis. Among the 27

firm-level studies, there is a clear emphasis on quantitative analysis (13 articles) as opposed

to qualitative analysis (6 articles), whilst methods used to study individual entrepreneurs are

diverse. Articles studying entrepreneurial projects, teams, dyads and communities are few

and far between. These include Lee and Williams’ (2007) study on learning at the level of

entrepreneurial communities in large multinational corporations, and Almeida et al.’s (2003)

study on the role of firm size in learning of start-ups from external sources based on the dyad

between start-ups and other start-ups and incumbents.

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“Insert Table 1 here”

A Summary of the Key Challenges for Future Research

In addition to the key themes and developmental patterns of EL research that we have

summarised, we draw attention to three key challenges in EL research that have emerged

from our analysis of the literature. First, as discussed in the themes “Theoretical

Perspectives”, “Types of Learning” and “Entrepreneurial Context”, while a large body of

work explains what and how individual entrepreneurs learn, more research is needed to

advance EL research at the team and organisational levels and beyond. EL research builds on

a wide range of individual and organisational learning theory and practice. Consequently, it

has inherited the longstanding problem in the organisational learning literature: how

individual learning can be integrated in collective learning. This is a challenge although it is

widely recognised that organisational learning is not equal to the sum of learning of

individuals (Cohen and Levinthal 1990). This challenge is highly relevant and to some extent

exacerbated in entrepreneurship because entrepreneurs are often motivated by individualistic

drive and energy. Whilst acknowledging the role of enterprising individuals in opportunity

discovery and exploitation (Venkataraman 1997), the entrepreneurship literature recognises

that it is often an entrepreneurial team, rather than an individual, that drives the

entrepreneurial process, even in the early stages of new venture creation (Kamm et al. 1990).

Integrating individual entrepreneurial behaviours and actions within collective efforts at the

team or organisational levels is indeed a thorny issue (Zahra 1993). This poses a key

challenge: how individual opportunity seeking behaviour can be integrated with

organisational advantage seeking behaviour (Hitt et al. 2001). In the next section, we discuss

the relationship of individual and collective learning, drawing on further insights from

19

entrepreneurship and organisational learning, as well as how these learning types help to

understand the key challenge.

Second, our analysis of “Definitions of Entrepreneurial Learning”, “Types of

Learning” and “Entrepreneurial Context” highlights that, whilst EL scholars have called for a

greater understanding of entrepreneurs’ learning processes in the opportunity discovery and

exploitation processes (Corbett 2005, 2007; Davidsson et al. 2001), there remains a paucity of

studies on learning in this area, especially the opportunity exploitation process. This EL

research gap corresponds to another challenge in the entrepreneurship literature: whilst it is

widely recognised that the processes of exploring and exploiting an opportunity are

heterogeneous (Stevenson and Jarillo 1990; Shane and Venkataraman 2000), more research is

needed to understand how to develop the skills and resources required to explore and exploit

opportunities. Entrepreneurs who create new ventures are not necessarily those who lead the

new ventures through growth and prosperity. Opportunity exploration and exploitation

require different sets of skills and resources (Choi and Shepherd 2004) and involve different

types of learning (Wang and Rafiq 2009). Therefore, in the next section, we discuss the

relationship of exploratory and exploitative learning, as well as their contribution to the

opportunity exploration and exploitation processes.

Third, as discussed in “Theoretical Perspectives”, “Types of Learning” and “Methods

and the Unit of Analysis”, the diversity, individuality and inconsistency of EL research

reflects researchers’ different ontological and epistemological positions, which in turn

underpin another key challenge: how entrepreneurial opportunities come about - which is at

the centre of debate in entrepreneurship research (Busenitz et al. 2003; Buenstorf 2007; Short

et al. 2010). The extent to which a researcher believes that the physical world exists

independently of our understanding or awareness of it (ontology) and that our knowledge of

the physical world depends on our prior conceptions and experiences (epistemology)

20

influence a researcher's fundamental research philosophies and methodological approaches.

Understanding the ontological, epistemological and methodological differences pertinent to

researchers’ perceptions of where entrepreneurial opportunities are from and how

entrepreneurs learn in exploring and exploiting opportunities is another key challenge. The

North American and European methodological divide on EL research to some extent reflects

such ontological and epistemological differences. Specifically, European researchers often

emphasise the subjective nature of knowledge and adopt a qualitative approach to

understanding the experiential nature of EL (e.g. Clarysse and Moray 2004; Cope 2003,

2005; Cope and Watts 2000; Deakins and Freel 1998; García-Cabrera and García-Soto 2009;

Huovinen and Tihula 2008) and the socially constructed nature of EL (e.g. Lee and Jones

2008; Lee and Williams 2007; Rae 2000, 2005, 2006; Rae and Carswell 2001; Taylor and

Thorpe 2004; Thorpe et al. 2006). Conversely, North American researchers often stress the

objective nature of knowledge and adopt a quantitative approach to examine to what extent

an existing learning theory plays a role in different entrepreneurial contexts (e.g. Almeida et

al. 2003; Covin et al. 2006; Nicholls-Nixon et al. 2000). Motivated by the different

approaches to understanding entrepreneurial opportunities and how entrepreneurs learn in

opportunity exploration and exploitation, we discuss a third pair of learning types: intuitive

learning (learning through discovering possibilities) and sensing learning (learning through

understanding and analysing facts) in the next section.

THE KEY LEARNING TYPES IN ENTREPRENEURIAL LEARNING

We discuss three pairs of learning types, namely individual and collective learning,

exploratory and exploitative learning, intuitive and sensing learning (see Figure 3). We

choose to discuss these key learning types for three reasons - because they: (1) derive from

the key research gaps based on our systematic literature analysis and correspond to the key

21

challenges in the entrepreneurship literature; (2) help to draw insights from the

entrepreneurship and organisational learning literatures and hence to further cross-fertilise the

two literature bodies to advance EL research; and (3) feed back to the entrepreneurship

literature by providing insights on how these learning styles help to understand the key

entrepreneurial problems. These learning types are not an exhaustive list of key learning

types, but those that help to address the current EL research gaps and the key research

challenges thereby deserving more attention in future study. We next discuss each pair of

learning types in detail before summarising them in Table 2.

“Insert Figure 3 here”

Individual and Collective Learning

In relation to the first challenge: how to integrate individual opportunity-seeking

behaviour with organisational advantage-seeking behaviour (Hitt et al. 2001), we discuss the

respective roles of individual and collective learning as well as their relationship (see Table

2). Individual learning is the process in which individuals acquire data, information, skill or

knowledge, whereas collective learning can be defined as a “social process of cumulative

knowledge, based on a set of shared rules and procedures which allow individuals to

coordinate their actions in search for problem solutions” (Capello 1999, p.354). Collective

learning may take place at the team level, the organisational level (Nelson and Winter 1977),

the regional level such as within regional innovation milieus (Capello 1999), or any other

unique social milieus (Easterby-Smith and Araujo 1999). What differentiates collective

learning from learning (or individual learning) is its social nature of learning; collective

learning is cumulative, interactive and public, and acts as a vehicle for temporal and spatial

knowledge transmission (Capello 1999). The social nature also indicates that collective

22

learning is reliant on an effective combination of know-what and know-how as well as know-

who (i.e. formal and informal contacts and networks that provide access to know-what and

know-how) (Gibb 1993, 1997; Jones et al. 2010). March (1991, p.73) also stresses the social

context in which a mutual learning process takes place between an organisation and the

individuals in it: “organizations store knowledge in their procedures, norms, rules and forms.

They accumulate such knowledge over time, learning from their members. At the same time,

individuals in an organization are socialized to organizational beliefs.” Recent research

concludes that entrepreneurs experience a high level of learning when there is a combination

of high learning challenge (i.e. the distance between the entrepreneur’s prior knowledge and

the role in the venture team) and a high level of learning support (i.e. team composition with

strong prior knowledge providing a rich learning milieu) (Sardana and Scott-Kemmis 2010).

This provides further evidence on the importance of social context in which entrepreneurs

learn.

Integrating individual learning with collective learning is an especially challenging

task for entrepreneurial firms given the individualistic nature of entrepreneurs. The EL

literature has started to address how collective learning takes place in organisations. For

example, Dutta and Crossan (2005, p.434) highlight two important processes of EL:

integrating as “the process of developing shared understanding amongst individuals and the

taking of coordinated action through mutual adjustment”; and institutionalising as “the

process of ensuring that routinized actions occur.” These processes enable individual

entrepreneurs to act as learning agents to evaluate what is possible within the organisation,

develop a coherent and collective action plan, and pool organisational resources to pursue

identified opportunities (Crossan et al. 1999). Empirical evidence supports that

entrepreneurial activities are more likely to bear fruit when individuals are committed to

common organisational goals (Wang 2008). From a social constructionist perspective,

23

organisations are sites of collective activity in which individuals are required to develop a

shared understanding of that activity (Easterby-Smith et al. 2000), and it is through

interaction within unique social milieus that learning occurs (Easterby-Smith and Araujo

1999). To facilitate effective social interactions among individuals, organisations need to

have effective systems for knowledge sharing (Jones and Macpherson 2006), as well as the

political will and skill to influence and institutionalise system changes that help to transform

a divided organisation to a practice-based community engaged in collective learning

(Macpherson and Jones 2008). Karataş-Özkan (2011) found that new venture team members

develop ‘a feel for the game’, understanding their own strengths and weaknesses and

adjusting their roles in the new venture. Such practice is associated with increased

entrepreneurial learning at individual and team level (Karataş-Özkan 2011).

The recent development of corporate entrepreneurship places a considerable emphasis

on how organisations can instil a culture and implement systems to align individual

opportunity-seeking behaviour with organisational advantage-seeking behaviour (Hitt et al.

2001). The ability of organisations to align individuals’ interests, motivate them to search for

opportunities, encourage them to cooperate in the creation of new resource combinations and

to exploit them successfully is a critical discriminator between prosperous entrepreneurial

firms and non-entrepreneurial firms (Chung and Gibbons 1997). Moreover, entrepreneurial

cognition within the entrepreneurship literature highlights the need for collective cognitions,

broadly defined as “the content of the combination of individual perspectives and the

structural characteristics of that combination” (West 2007, p.84). The structure of the

combination is critical for integrating individual perspectives. In particular, the structure must

provide a unique goal that is clearly differentiated from other goals and promote a consistent

understanding of the goal among individual members; this dual characteristics of the structure

of collective cognitions are referred to as differentiation and integration (West 2007).

24

Collective cognitions are developed through ongoing comprehension of unfolding events by

teams of interacting individuals (Weick and Roberts 1993). Further, Lee and Jones (2008),

extending Nahapiet and Ghoshal’s (1998) notion of cognitive social capital (i.e. social norms,

values, attitudes and beliefs), bridges the gap between individual cognition and the distributed

nature of organising; they argue that entrepreneurs’ perceptions of shared language, codes

and narratives are critical for developing shared understanding and common values leading to

efficient and effective social relations.

Despite the insights from entrepreneurship and organisational learning on the

integration of individual and collective learning, several questions deserve more attention, for

example, “How does the entrepreneurial team composition affect individual and

organisational learning?”, “What organisational conditions simultaneously promote

individual and collective learning in entrepreneurial firms?”, “How is a collective cognition

formed through a learning process in an entrepreneurial team or firm?” More research is also

needed to understand how learning takes place in entrepreneurial clusters, communities and

networks, and how learning helps to shape an entrepreneurial cluster, community or network.

Exploratory and Exploitative Learning

The second challenge is how to develop skills and resources required for opportunity

exploration and exploitation as two heterogeneous processes of entrepreneurship (Stevenson

and Jarillo 1990; Shane and Venkataraman 2000). In relation to this we discuss the respective

roles of, and the relationship between, exploratory and exploitative learning (see Table 2).

According to McGrath (2001), exploratory learning emphasises discovery through enactment

and interpretation to generate enough variations that some will prove ex post to yield

desirable results, while exploitative learning focuses on directed search that is amenable to ex

ante planning and control to limit variety achieved by honing in on and deepening initial

25

insights as experience increases. Exploratory learning (variance-seeking learning) increases

performance variance, while exploitative learning (mean-seeking learning) improves mean

performance and decreases variance (McGrath 2001). Exploratory learning (also

experimental learning) often results from the internal transformation through developing new

knowledge (Kreiser 2011; Zhao et al. 2011) and could involve firms breaking away from a

successful action pattern (i.e. deviance-error learning) (Bingham and Davis 2012).

Exploitative learning (also acquisitive learning) often results from the acquisition and

assimilation of existing knowledge that exists outside the firm (Kreiser 2011; Zhao et al.

2011), and is associated with trial-and-error learning (Bingham and Davis 2012). Exploratory

and exploitative learning corresponds to the learning processes involved in exploration and

exploitation as March (1991, p.71) describes: exploration involves “search, variation, risk

taking, experimentation, play, flexibility, [and] discovery,” while exploitation entails

“refinement, choice, production, efficiency, selection, implementation, [and] execution.”

Although exploratory and exploitative learning are both required to generate new ideas, select

ideas, and eventually implement a chosen idea in an entrepreneurial process, the existence of

positive performance effects derive from the balanced application of exploration and

exploitation (March 1991; Sirén et al. 2012).

The entrepreneurship and especially entrepreneurial cognition literature lends some

insights, with a particular emphasis on opportunity exploration (discovery, recognition, and

evaluation). Opportunity discovery relies on the possession of prior knowledge required to

recognise the opportunity and the cognitive properties required to value it (Shane and

Venkataraman 2000). Compared with non-entrepreneurs, entrepreneurs are more likely to

think and reason based on cognitive heuristics and biases (e.g. self-serving bias and

counterfactual thinking) due to the highly uncertain conditions that entrepreneurs tend to

encounter (Baron 1998). Moreover, entrepreneurs are more likely to use creativity-based

26

cognitive approaches (i.e. conceptual combination, analogical reasoning, abstraction, and

problem formulation) to generate novel ideas (Ward 2004). The high level of creativity is

particularly fitting with the exploratory learning process. However, such cognitive style may

cause frustration and burnout as the venture goes through the exploitation phase (Brigham

and De Castro 2003), and hence becomes counter-productive in the exploitative learning

process.

The demand of exploratory and exploitative learning on organisations is echoed in

other organisational learning theories, such as Argyris and Schön’s (1978) single-loop

(adaptive) and double-loop (generative) learning and Fiol and Lyles’s (1985) higher and

lower level learning. Adaptive and lower level learning involves modifying actions according

to the difference between expected and obtained outcomes (hence exploitative in nature),

whereas generative and higher level learning involves questioning the values, assumptions

and policies that lead to the actions in the first place, and searching and discovering new

solutions (hence exploratory in nature). The latter entails a higher level of unlearning

(Hedberg 1981; Zahra et al. 2011), that is, deliberately learning not to do something.

Especially, learning from failure is a function of distinctive learning processes that enable

higher-level learning outcomes (Cope 2011). Although the two types of learning may occur

in any organisation, entrepreneurial firms are prone to a higher level of exploratory and

generative learning (and hence unlearning) compared with non-entrepreneurial firms, since

they often operate in a highly uncertain environment.

Overall, exploratory and exploitative learning are key learning types for

understanding what and how entrepreneurs learn in the opportunity exploration and

exploitation processes. However, despite the insights from the organisational learning and

entrepreneurship literatures, many research questions require further investigation, for

example, “How does the learning of entrepreneurs or entrepreneurial firms differ in the

27

processes of exploration and exploitation?”, “What and how do entrepreneurs or

entrepreneurial firms unlearn?”, “What organisational contexts are more conducive to

exploratory or exploitative learning?”, “What cognitive processes do entrepreneurs go

through in different learning contexts?”, and “How do the cognitive processes of

entrepreneurs differ in exploratory and exploitative learning?”

Intuitive and Sensing Learning

To discuss the third challenge: how entrepreneurial opportunities come about -

discovery or creation (Eckhardt and Shane 2003; Buenstorf 2007; Short et al. 2010), we

discuss two relevant learning types: intuitive and sensing learning (see Table 2). The concepts

of intuitive and sensing learning styles were initially developed by Jung (1971) in his

psychological types, later operationalised by Myers and McCaulley (1985), and are currently

used widely in education research. Sensing learning involves learning by knowing facts or

details based on external contacts through sights, sounds and physical sensations, while

intuitive learning involves learning by knowing relationships of facts through discovering

possibilities (Felder and Silverman 1988). Sensing learners are considered concrete and

practical thinkers, implying that they are more prone to discover and identify an opportunity

that exists in the environment through understanding and analysing the relationships of

market conditions. Conversely, intuitive learners are considered abstract thinkers, suggesting

that they are more likely to create a new opportunity based on a high level of conceptual

thinking and discovering possibilities. Intuitive learning is akin to what Bingham and Davis

(2012, p.613) describe as improvisational learning – “a real-time learning process in which

firms learn to solve unexpected problems or capturing surprising opportunities in the moment

(Miner et al. 2001)”. Research has found that the more an individual’s cognitive processing

style tends toward ‘intuitive’ and away from ‘analytical,’ the more opportunities an

28

individual is likely to identify (Corbett 2002). These learning types are instrumental to the

understanding of how entrepreneurial opportunities (Venkataraman 1997; Eckhardt and

Shane 2003) come about - a key theme of the entrepreneurship research.

In a recent review, Short et al. (2010) conclude that little agreement exists about the

definition, the nature and the role of opportunities (Buenstorf 2007; Eckhardt and Shane

2003; Short et al. 2010). One of the several conflicting views is whether entrepreneurial

opportunities are discovered or created (Buenstorf 2007). The discovery approach is

positioned in the positivist school of thought predominant among North American

researchers, suggesting that opportunities exist in the environment independent of the

entrepreneur. What differentiates entrepreneurs from non-entrepreneurs is ‘entrepreneurial

alertness’ - the ability to see the gap where products or services do not exist (Kirzner 1979).

In contrast, the creation approach, typically represented by the European research, is centred

in the interpretivist or social constructionist school of thought, postulating that opportunities

emerge as a result of the entrepreneur’s perception, interpretation, and understanding of the

environment (Gartner et al. 2003). This stream of literature focuses on the developmental

nature of entrepreneurial behaviour, that is, an entrepreneur’s ability to learn, grow, and

change (Gartner 1988; Rae 2000; Cope 2005), such as in unfolding entrepreneurial events. To

address the limitations of the two opposing approaches, Shane (2003) argues that

opportunities may exist as objective realities even though their discovery may require a

creative act by the entrepreneur (Shane 2003). Furthermore, effectual entrepreneurs can use

their expertise to recognise, discover or create opportunities dependent on market conditions

(Sarasvathy et al. 2003). This suggests that opportunity exploration may involve both

intuitive and sensing learning.

A number of learning theories complement the understanding of intuitive and sensing

learning. First, Cook et al. (2009) note that the sensing and intuitive learning types are similar

29

to the concrete-abstract learning dimension of Kolb’s (1984, 1985) experiential learning

theory, which has been widely used in the EL research. The experiential learning cycle also

helps to fill the gap of how concrete experience is transformed to abstract conceptualisation

(i.e. through reflective observation), which through active experimentation modifies the next

occurrence of concrete experience (Kolb 1984, 1985). However, how this full experiential

learning cycle occurs among entrepreneurs or in entrepreneurial firms requires further

research, as the majority of the experiential learning research has not fully addressed this

issue as pointed out in our literature analysis. Second, several other learning theories from the

social constructivist perspective, such as the situated learning theory (Lave and Wenger 1991;

Wenger 1998; Brown and Duguid 1991) and the social theory of learning (e.g. Rae and

Carswell 2001; Taylor and Thorpe 2004; Rae 2005, 2006; Thorpe et al. 2006; Lee and

Williams 2007) (see Appendix 1) help to explain the intricacies of sensing learning. These

theories essentially argue that knowledge or learning is evident in situated activity or

‘knowing’ (Macpherson and Jones 2008). Learning is a process of social interaction (Fang et

al. 2010) or co-participation, dependent on social, historical and cultural factors (Taylor and

Thorpe 2004), and hence “an integral and inseparable aspect of social practice” (Lave and

Wenger 1991, p.31). More specifically, social learning theory also suggests that learning

occurs through close contact with other people and observation and imitation of role model

behaviours (Bandura 1977). That is, learning can take place vicariously (Lévesque et al.

2009). Entrepreneurs’ self-efficacy, managerial experience, business skills, and education

levels are all influenced by the socialisation process (Jones and Tullous 2002), and hence

affected by the social groups to which the entrepreneur is related (Cope 2005). Social

processes in which entrepreneurs seek to repair relational damage caused by venture failure

are associated with their regression and gradual re-emergence, leading to social affirmation

that may support rehabilitation (Cope 2011).

30

In sum, the roles of intuitive and sensing learning have not been fully addressed in the

EL literature. This is an important research area, given that these learning types help to

enhance our understanding of the debate on how opportunities are discovered or created, and

how the rational and the effectuation approaches to entrepreneurial behaviours can be

explained. Future research may address questions such as “What factors play a key role in

each stage of the experiential learning cycle, especially the transformation of an

entrepreneur’s concrete experience to abstract conceptualisation?”, “What and how do

entrepreneurs or entrepreneurial firms learn from the experience (successes and failures) of

other entrepreneurs or entrepreneurial firms?”, “To what extent is the entrepreneurial

decision-making process based on intuitive or analytical skills of the entrepreneur?”, “How

do creative and analytical skills affect learning in the entrepreneurship process?”, and “How

do entrepreneurs or entrepreneurial firms search and acquire external information, and make

sense of the information in the learning process?”

“Insert Table 2 here”

In sum, the three pairs of learning types (see Table 2) are fundamental to the

understanding of entrepreneurial behaviours, namely individual opportunity-seeking and

organisational advantage-seeking, opportunity exploration and exploitation, and the discovery

or creation approaches to entrepreneurial opportunities. The respective roles of these learning

types are dependent on the individual, team, organisational, social and environmental

contexts in which EL takes place, as discussed. Literature suggests that firms may combine

different types of learning over time in the form of learning sequences, which are in turn

influenced by initial learning conditions (Bingham and Davis 2012).

31

DISCUSSION: THE STATE OF ENTREPRENEURIAL LEARNING

Despite the scholarly call for building EL theory (Krueger 2003), the EL literature is

fragmented and ad-hoc in nature (Harrison and Leitch 2005). Macpherson (2009) echoes the

concern of the highly individualistic approaches to EL. Our analysis of the EL literature

clearly reveals the diverse philosophical, theoretical and methodological approaches used to

study the learning process in the entrepreneurial context. We summarise the key aspects

covered in the literature to consolidate and delineate the domain of EL set out in our

objectives.

The Domain of EL Research

First, EL relies not only on know-what and know-how, but also know-who. Know-

what and know-how focus on information, knowledge, and experience, for example,

accumulating or updating knowledge (Minniti and Bygrave 2001), the development of new

knowledge (Politis 2005), accumulating and organising knowledge and information (Ravasi

and Turati 2005), and acquiring new knowledge (Holcomb et al. 2009). Know-who provides

formal and informal contacts and networks, and hence access to know-what and know-how

(Gibb 1993, 1997; Jones et al. 2010). Accordingly, EL occurs when entrepreneurs make

sense of the world around them and change it in some arresting manner (Starbuck 1983;

Thorpe et al. 2006); when entrepreneurs interact socially to initiate, organise and manage

ventures (Rae 2005); when entrepreneurs transform experience into action in a business

setting (Lee and Jones 2008); and when entrepreneurs construct new meaning in the process

of recognising and acting on opportunities (Rae and Carswell 2001).

Second, the mechanisms (or the types of learning) by which learning takes place (i.e.

how learning occurs) are primarily drawn from the individual and organisational learning

literature. Individual learning styles include experiential learning specifically defined by Kolb

32

(1984), as well as experiential learning as a broad learning process encapsulating learning-by-

doing (Cope 2003), trial-and-error learning (Lant and Mezias 1990), learning from past

experience (Lamont 1972; Minniti and Bygrave 2001; Rerup 2005), and learning from

participation and the experience of others (i.e. vicarious learning) (Lévesque et al. 2009).

Several influential organisational learning mechanisms include single-loop/adaptive and

double-loop/generative learning (Argyris and Schön 1978), higher-level or lower-level

learning (Fiol and Lyles 1985), and exploratory and exploitative learning (March 1991). Each

type involves the development or modification of new or existing insights and behaviours.

Third, the processes of EL are intertwined in the processes of exploring and exploiting

an entrepreneurial opportunity. For example, EL is defined as “what informs the

entrepreneur’s quest for new opportunities” (Franco and Haase 2009). Depending on the

individual, team, organisational, social or environmental contexts, EL processes may be

present in different forms. For example, EL may entail learning by an independent

entrepreneur, an entrepreneurial team and firm; or learning by an individual, team or firm to

behave or work in an entrepreneurial way (Rae 2000). Moreover, EL may involve a dynamic

process characterised by ongoing knowledge acquisition, organisation, development and

creation (also see Minniti and Bygrave 2001); this could be a continuous learning process

made of multiple learning epochs (Voudouris et al. 2011), a sporadic process where learning

occurs from moments in which an individual is situated (Rae 2011), or due to critical events

(see Cope and Watts 2000). Moreover, EL is referred to as a lived experience involving a

cumulative series of interdependent events (Morris et al. 2012). Pittaway and Thorpe (2012)

point out that Jason Cope contributed significantly to the theorising of the lived experience of

entrepreneurs through understanding discontinuous events, and such events could well be

venture failure (Cope 2011).

33

Fourth, the outcome of EL generally involves the development of new insights and

behaviours or the modification of existing insights and behaviours, which may be embedded

in multi-faceted entrepreneurial activities. For example, EL is often associated with the

implementation of an opportunity leading to the creation and development of a new venture

(Berglund et al. 2007; Cope 2005; Hughes et al. 2007; Nicholls-Nixon et al. 2000), a spin-off

from an existing organisation (Clarysse and Moray 2004; Lamont 1972), a renewal of an

existing organisation (Covin et al. 2006; Corbett et al. 2007), or even exiting an

entrepreneurial venture which has learning effects enhancing the entrepreneur’s accumulated

knowledge base (Breslin 2008). The array of contents, mechanisms, processes and outcomes

depict the domain of EL research within a growing body of literature.

The Role of EL in the Organisational Learning and Entrepreneurship Literatures

Based on our literature analysis, we have identified and discussed three pairs of key

learning types that correspond to three key challenges that emerged from our literature

analysis: (a) individual and collective learning that helps to integrate individual opportunity-

seeking behaviour with organisational advantage-seeking behaviour; (b) exploratory and

exploitative learning that helps to resolve the paradox of opportunity exploration and

exploitation as two heterogeneous entrepreneurial processes; and (c) intuitive and sensing

learning that helps to understand how entrepreneurial opportunities come about. We have

also identified some fruitful avenues for future research to help to move EL research forward.

As discussed, these learning types can draw insights from, and also feed back to, the

organisational learning and entrepreneurship literatures. In particular, although EL has

become a promising research area attracting an increasing number of scholarly publications,

there is a high level of interest on applying experiential and organisational learning theories

in the entrepreneurship process rather than building new EL theory as revealed in our

34

analysis. As a result, the boundary of exchange between EL and organisational learning

remain largely unspecified. In other words, little is known about how the learning processes

or mechanisms of entrepreneurs or entrepreneurial firms differ from non-entrepreneurs and

non-entrepreneurial firms. Through our key EL learning types, we highlight that

entrepreneurial firms are more likely to face the challenge of integrating individual learning

with collective learning given the individualistic nature of entrepreneurs. Given collective

learning is social and interactive by nature (Capello 1999), entrepreneurial firms are

considered as sites of collective activity in which individuals interact socially (Jones and

Macpherson 2006) to develop a shared understanding of that activity (Easterby-Smith et al.

2000). We also stress that compared with their non-entrepreneurial counterparts,

entrepreneurial firms are more likely to use creativity-based, variance-seeking learning (i.e.

exploratory learning) (McGrath 2001) as well as unlearning (Hedberg 1981), since they often

operate in a dynamic environment. Therefore, entrepreneurs are likely to possess a high level

of cognitive heuristics and biases, such as counterfactual thinking (Baron 1998), especially in

the opportunity exploration process. Finally, intuitive learners are more likely to create a new

opportunity based on a high level of conceptual thinking, while sensing learners are more

prone to discover an opportunity by scanning the environment and analysing the relationships

of market conditions. These learning types help to explain how entrepreneurial opportunities

come about; following Shane (2003) and Sarasvathy et al.’s (2003) arguments on the

combination or an effectuation process of opportunities as objective realities and as the

creative discovery of entrepreneurs, intuitive and sensing learning complement each other in

the opportunity exploration and exploitation process.

On the other hand, EL has risen to the fundamental paradigmatic shift of

entrepreneurship from a static, trait-based approach to a dynamic, learning-based approach.

The three pairs of learning types help to understand some of the challenges, namely the

35

problem of integrating individuals' opportunity-seeking behaviour with the firm’s advantage-

seeking behaviour (Hitt et al. 2001), the paradoxical demands between opportunity

exploration and exploitation, and the discovery or creation approaches to entrepreneurial

opportunities. The learning types we discussed help to cross-fertilise the literatures of

entrepreneurship and organisational learning. The advancement of EL may contribute to a

further paradigmatic shift of entrepreneurship towards becoming a more ‘interdisciplinary’

arena, which is supported by Steyaert (2005) and Schindehutte and Morris (2009).

EL research so far has focused on applying existing theories in the entrepreneurial

context. Future research may place more emphasis on theory building in certain under-

researched areas, for example, how the three different pairs of learning types come into play

in different entrepreneurial contexts. This requires more qualitative, phenomenon-driven

research, which is especially effective in addressing ‘how’ and ‘why’ in unexplored or under-

explored research areas with little viable theory and empirical evidence (Eisenhardt and

Graebner 2007). Greater research collaboration between North America and Europe is needed

to facilitate knowledge exchange and cross-fertilisation of EL research. This comes with the

caveat that there will be challenges to overcome between the two research camps as they both

come from different philosophical stances. Possible ways to cross-fertilise North American

and European research on EL include using mixed methods to mitigate the limitations of

using quantitative or qualitative methods alone, or research collaboration where researchers

interact and socialise to build on the strengths of their philosophical and methodological

differences. However, it is argued that researchers’ different philosophical beliefs and

preferred research approaches may be incommensurable. Therefore, it is challenging for a

researcher working within one philosophical and methodological approach to work within

another one. Alternatively, cross-fertilisation could also be achieved by encouraging theory

developed in one research camp (i.e. European) based on qualitative, phenomenon-driven

36

research to be tested by researchers in another (i.e. North American) using quantitative

research.

CONCLUSION

EL has become an important research area at the interface of entrepreneurship and

organisational learning. This article has identified a critical mass of EL research. However,

the EL literature is highly individualistic and fragmented, calling for both theoretical and

empirical development. Based on a systematic analysis of the literature, we identified key EL

research themes and developmental patterns. Moreover, we identified three key EL research

gaps and discussed three pairs of learning styles that deserve more attention in future

research, namely individual and collective learning, exploratory and exploitative learning,

and intuitive and sensing learning. The three pairs of learning styles correspond to three key

challenges in the entrepreneurship literature, namely the need for integrating individual

opportunity-seeking behaviour with organisational advantage-seeking behaviour; the need for

developing skills and resources required for opportunity exploration and exploitation; and the

need for understanding how entrepreneurial opportunities come about. Therefore, the three

pairs of learning styles help to advance EL research and also feed back to the

entrepreneurship literature.

37

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Steyaert, C. (2005). Entrepreneurship: In between what? On the “frontier”: As a discourse of entrepreneurship research. International Journal of Entrepreneurship and Small Business, 2(1), pp.2-16.

Stokes, D. and Blackburn, R. (2002). Learning the hard way: The lessons of owner-managers who have closed their businesses. Journal of Small Business and Enterprise Development, 9(1), pp.17-27.

Storey, D. and Sykes, N. (1996). Uncertainty, innovation and management. In Burns, P. and Dewhurst, J. (Eds). Small Business and Entrepreneurship, 2nd Edition. Macmillan, UK, pp.73-93.

Sullivan, R. (2000). Entrepreneurial learning and mentoring. International Journal of Entrepreneurial Behaviour & Research, 6(3), pp.160-175.

Sundbo, J. (1996). The balancing of empowerment. Technovation, 16(8), pp.397-446.

Taylor, D. W. and Thorpe, R. (2004). Entrepreneurial learning: A process of co-participation. Journal of Small Business and Enterprise Development, 11(2), pp.203-211.

Thorpe, R., Gold, J., Holt, R. and Clarke, J. (2006). Immaturity: The constraining of entrepreneurship. International Small Business Journal, 24(3), pp.232-252.

Timmons, J. A. and Spinelli, S. (2006). New venture creation: Entrepreneurship for the 21st Century, 7th Edition. McGraw-Hill Higher Education, Boston.

Tranfield, D., Denyer, D. and Smart, P. (2003). Towards a methodology for developing evidence-informed management knowledge by means of systematic review. British Journal of Management, 14, pp.207-222.

Van de Ven, A. H. and Polley, D. (1992). Learning while innovating. Organization Science, 3(1), pp.92-116.

Venkataraman, S. (1997). The distinctive domain of entrepreneurship research: An editor’s perspective. In Katz, J. and Brockhaus, R. (Eds.), Advances in Entrepreneurship, Firm Emergence, and Growth, 3, pp.119-138. Greenwich, CT: JAI Press.

Voudouris, I., Dimitratos, P. and Salavou, H. (2011). Entrepreneurial learning in the international new high-technology venture. International Small Business Journal, 29(3), pp.238-258.

Wang, C. L. (2008). Entrepreneurial orientation, learning orientation, and firm performance. Entrepreneurship Theory and Practice, 32(4), pp.635-656.

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Wang, C. L. and Rafiq, M. (2009). Organizational diversity and shared vision: Resolving the paradox of exploratory and exploitative learning. European Journal of Innovation Management, 12(1), pp.86-101.

Ward, T. B. (2004). Cognition, creativity, and entrepreneurship. Journal of Business Venturing, 19(2), pp.173-18.

Weick, K. E. and Roberts, K. H. (1993). Collective mind in organizations: Heedful interrelating on flight decks. Administrative Science Quarterly, 38(3), pp.357-381.

Wenger, E. (1998). Communities of Practice: Learning, Meaning, and Identity. New York: Cambridge University Press.

West, G. P. III (2007). Collective cognition: when entrepreneurial teams, not individuals, make decisions. Entrepreneurship Theory and Practice, 31(1), pp.77-102.

Westhead, P. and Wright, M. (2011). David Storey's optimism and chance perspective: a case of the emperor's new clothes? International Small Business Journal, 29(6), pp.714-729.

Young, J. E. and Sexton, D. L. (2003). What makes entrepreneurs learn and how do they do it? Journal of Entrepreneurship, 12(2), pp.155-182.

Zahra, S.A. (1993). A conceptual model of entrepreneurship as firm behavior: A critique and extension. Entrepreneurship Theory and Practice, 17, pp.5-21.

Zahra, S. A., Abdelgawad, S. G. and Tsang, E. W. K. (2011). Emerging multinationals venturing into developed economies: implications for learning, unlearning, and entrepreneurial capability. Journal of Management Inquiry, 20(3), pp.323-330.

Zahra, S. A. and George, G. (2002). Absorptive capacity: A review, reconceptualization, and extension. Academy of Management Review, 27(2), pp.185-203.

Zhao, Y., Li, Y., Lee, S. H. and Chen, L. B. (2011). Entrepreneurial orientation, organizational learning, and performance: evidence from China. Entrepreneurship Theory & Practice, 35(2), pp.293-317.

50

Figure 1. A Summary of the Systematic Literature Review (SLR) Process

Setting the research objectives:

-Discuss the key learning types that help address the key EL challenges -Draw further insights from the entrepreneurship and organisational learning literatures

to advance EL research and identify avenues for future research

Defining the conceptual boundaries:- Broadly defining EL

-Defining entrepreneurship and entrepreneurial opportunities -Defining the entrepreneurial contexts

Applying exclusion criteria:-Articles that primarily focused on learning, but not the

entrepreneurship process-Articles that primarily focused on entrepreneurship, but not

the learning process

Search boundaries: -ABS ranked journals -Primary & secondary

subject areas-Electronic databases

Search terms:-Entrepreneur* AND Learn*-Opportunity AND Learn*

Cover period: Up to and including

August 2012

Validating search results:-An independent literature search on EL using the Google Scholar was

compared with the above search results

Independent data coding:-Researcher A

Independent data coding:-Researcher B

Validating data coding:-Cross-checking coding results-Revisiting articles for recoding-Ensuring inter-rater reliability

Setting the inclusion criteria

-Identify key research themes to date and challenges for future research

51

Figure 2. EL Publication Distribution (1972-20111)

1 Note to Figure 2. While our literature search included articles published up to and including August 2012, we have only included articles till 2011 in this figure, so that we do not give an inaccurate representation of the articles published in 2012. N.B. There have been 3 empirical articles and 1 conceptual article published from January-August 2012.

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Conceptual Empirical

52

Figure 3. EL: Boundaries and Key Learning Types

Entrepreneurial learning

-Individual and collective learning-Exploratory and

exploitative learning-Intuitive and sensing

learning

53

Table 1. Entrepreneurial Context, Methods, and the Unit of Analysis

Opportunity Exploration & Exploitation

in Start-up Entrepreneurship (SE) Opportunity Exploration and

Exploitation in Established Firms (EE) Opportunity Exploration and Exploitation

in General Entrepreneurship (GE) Subtotal Qual Quan Mixed Conceptual Qual Quan Mixed Conceptual Qual Quan Mixed Conceptual

Individual 3c 6b 2 1 3 1b 2 2 8 3 14d 45 Project 1 1 Team 2c 2 Organisation 1 5 1 4 8a 1 2 1 1 3d 27 Dyad 1 1 Community 1 1 Unspecified 1 1 Subtotal 1 6 12 3 1 8 9 3 5 9 4 0 18 78b, c, d Subtotal 2 22 25 31 Notes to Table 1: aThese include one paper using simulation methods (Lant and Mezias, 1990). bHonig (2001) studies both nascent entrepreneurs and intrapreneurs within established firms; this paper is recorded in both the SE and the EE domains (therefore counted twice); c Karataş-Özkan (2011) study both the micro-level analysis of entrepreneurs; and meso-relational level analysis of entrepreneurial teams (therefore counted twice); d Westhead and Wright (2011) discuss both the entrepreneur and the firm (therefore counted twice).

54

Table 2. A Summary of the Key Learning Types Key Learning Type

Definitions of Learning Type

Key Challenge Example Links with Entrepreneurship and Learning Literatures

Example Future Research Questions

Individual learning

The process in which individuals acquire data, information, skill or knowledge.

How to integrate individual opportunity-seeking behaviour with organisational advantage-seeking behaviour (Hitt et al. 2001)

Team learning, organisational learning (Nelson and Winter 1977), learning within regional milieus (Capello 1999) or unique social milieus (Easterby-Smith and Araujo 1999) Social nature of learning: cumulative, interactive and public (Capello 1999); emphasis on the social context in which mutual learning takes place (March 1991) and social interactions are enabled (Easterby-Smith and Araujo 1999; Jones and Macpherson 2006) Effective combination of know-what, know-how and know-who (Gibb 1993, 1997; Jones et al. 2010) The processes of integrating and institutionalising (Dutta and Crossan 2005) The importance of a shared vision (Wang 2008); shared understanding of the collective activity (Easterby-Smith et al. 2000); Developing collective cognitions consisting differentiation and integration (West 2007) Effective organisational systems for knowledge sharing (Jones and Macpherson 2006), and the political will and skill to influence and institutionalise system changes (Macpherson and Jones 2008).

How does the entrepreneurial team composition affect individual and organisational learning? What organisational conditions simultaneously promote individual and collective learning in entrepreneurial firms? How is a collective cognition formed through a learning process in an entrepreneurial team or firm? How does learning occur within an entrepreneurial cluster, community or network? How does learning help to shape an entrepreneurial cluster, community or network?

Collective learning

“a social process of cumulative knowledge, based on a set of shared rules and procedures which allow individuals to coordinate their actions in search for problem solutions” (Capello 1999, p.354)

55

Key Learning Type

Definitions of Learning Type

Key Challenge Example Links with Entrepreneurship and Learning Literatures

Example Future Research Questions

Exploratory learning

Focus on discovery through enactment and interpretation to generate enough variations that some will prove ex post to yield desirable results (variance-seeking learning that increases performance variance) (McGrath 2001)

How to develop skills and resources required for opportunity exploration and exploitation - two heterogeneous processes of entrepreneurship (Stevenson and Jarillo 1990; Shane and Venkataraman 2000)

Difference between exploration and exploitation (March 1991) Cognitive properties required for opportunity exploration and exploitation (Shane and Venkataraman 2000); cognitive heuristics and biases of entrepreneurs (Baron 1998); creativity-based cognitive approaches (Ward 2004) Single-loop (adaptive) and double-loop (generative) learning (Argyris and Schön 1978); lower and higher level learning (Fiol and Lyles 1985) Unlearning (Hedberg 1981; Zahra et al. 2011) Acquisitive learning through acquiring and assimilating external knowledge and experimental learning through internal transformation (Kreiser 2011)

How does the learning of entrepreneurs or entrepreneurial firms differ in the process of exploration and exploitation? What and how do entrepreneurs or entrepreneurial firms unlearn? What organisational contexts are more conducive to exploratory or exploitative learning? What cognitive processes do entrepreneurs go through in different learning contexts? How do the cognitive processes of entrepreneurs differ in exploratory and exploitative learning?

Exploitative learning

Emphasis on directed search that is amenable to ex ante planning and control to limit variety achieved by honing in on and deepening initial insights as experience increases (mean-seeking learning that improves mean performance and decreases variance) (McGrath 2001)

56

Key Learning Type

Definitions of Learning Type

Key Challenge Example Links with Entrepreneurship and Learning Literatures

Example Future Research Questions

Intuitive learning

Learning by knowing relationships of facts through discovering possibilities (abstract, conceptual thinking) (Felder and Silverman 1988)

How entrepreneurial opportunities come about - discovered or created (Eckhardt and Shane 2003; Buenstorf 2007; Short et al. 2010)

Psychological types (Jung 1971; Myers and McCaulley 1985) Individuals’ cognitive (intuitive or analytical) processing styles (Corbett 2002) The discovery approach to entrepreneurial opportunities following the positivist school of thought (Kirzner 1979) The creation approach to entrepreneurial opportunities following the interpretive or social constructionist school of thought (Gartner 1988; Rae 2000; Cope 2005) Opportunities as objective realities but their discovery may require a creative act by entrepreneurs (Shane 2003). Effectuation approach to entrepreneurship (Sarasvathy et al. 2003) Experiential learning (Kolb 1984, 1985) Situated learning theory (Lave and Wenger 1991; Wenger 1998); the social theory of learning (Rae and Carswell 2001; Taylor and Thorpe 2004; Rae 2005, 2006; Thorpe et al. 2006; Cope 2005); social learning theory (Bandura 1977) Vicarious learning (Lévesque et al. 2009)

What factors play a key role in each stage of the experiential learning cycle, especially the transformation of an entrepreneur's concrete experience to abstract conceptualisation? What and how do entrepreneurs or entrepreneurial firm learn from experience (successes and failures) of other entrepreneurs/ entrepreneurial firms? To what extent is the entrepreneurial decision-making process based on intuitive or analytical skills of the entrepreneur? How do creative and analytical skills affect learning in the entrepreneurship process? How do entrepreneurs or entrepreneurial firms search and acquire external information, and make sense of the information in the learning process?

Sensing learning

Learning by knowing facts or details based on external contacts through sights, sounds and physical sensations (concrete, analytical thinking) (Felder and Silverman 1988)

57

Appendix 1. A Summary of EL Publications Authors Year Country Journal Theoretical

perspectives Definition of EL Entrepreneurial

context Types of learning Methods Unit of analysis

Almeida, Dokko and Rosenkopf (3, 10)

2003 US, US, US Research Policy Strategic management and organisational theory

None given SE External learning and absorptive capacity

A quantitative study based on patent data from 71 start-ups and 119 incumbents

The dyad between start-ups and other start-ups or incumbents

Balasubramanian(a, 3, 9)

2011 US Management Science

Strategic management, in particular, dynamic capabilities

None given SE Learning from experience

A quantitative study of 183,020 plant-year observations on 47,915 new plants belonging to 39,279 firms drawn from a longitudinal data at the US Census Bureau

Firm

Berglund, Hellström and Sjölander (b, 2)

2007 Sweden / Norway, Norway, Sweden

Venture Capital: an international journal of entrepreneurial finance

Two modes of learning: hypothesis-testing and hermeneutic learning

*EL is explicitly defined as 'venture learning, i.e. learning by the whole venture team' (Footnote 1, p.178)

GE (entrepreneur) Hypothesis testing (Harper, 1996) and hermeneutic learning Lavoie, 1990)

n/a Individual

Bingham and Davis (1, 4, 6, 9, 10, 16)

2012 US, US Academy of Management Journal

Organisational theory and strategy

None given EE (small firms) Direct learning (experimental, trial-and-error, improvisational, deviance-error learning); indirect learning (vicarious learning and learning from external advice)

A mixed methods of quantitative and qualitative study of 9 entrepreneurial firms in Finland, the US and Singapore

Firm

Boussouara and Deakins

1999 UK, UK International Journal of Entrepreneurial Behaviour & Research (IJEB&R)

Marketing, learning, and entrepreneurship

*None given EE (small firms) Individual and organisational learning

A qualitative study based on interviews within four case studies of entrepreneurial firms

Firm

Chaston, Badger and Sadler-Smith (1, 6, 12, 13, 14)

2001 UK, UK, UK Journal of Small Business Management

Organisational learning and strategic management

None given EE (small firms) Double-loop learning A quantitative study based on a survey of 179 UK small firms

Firm

Clarysse and Moray

2004 Belgium, Belgium

Journal of Business Venturing (JBV)

Experiential learning None given SE Learning by doing, individual learning, collective team learning

A qualitative study of a longitudinal case study of a high-tech start-up using participant observation and interviews

Team

58

Cope (1, 5, 6, 14) 2003 UK Management Learning

Experiential learning *None given EE (small firms) Experiential learning (or learning-by-doing); higher-level (double-loop, generative) learning and lower-level (single-loop, adaptive) learning

A qualitative study based on case studies of six practicing entrepreneurs; data were collected through interviews

Individual

Cope (b, 1, 5, 6, 7, 8, 14)

2005 UK Entrepreneurship Theory and Practice (ET&P), (Special Issue)

A dynamic learning perspective of entrepreneurship

*EL is explicitly defined as 'learning experienced by entrepreneurs during the creation and development of a small enterprise, rather than a particular style or form of learning that could be described as “entrepreneurial.”' (Footnote 1, p.374)

GE (entrepreneur) Experiential learning, routinised learning

n/a Individual

Cope (b, 1 , 14) 2011 UK JBV Entrepreneurial learning theory, social psychology perspective, entrepreneurship

*EL is implicitly defined as “a negotiated and relational process” (Hamilton, 2004; Pittaway and Rose, 2006; Thorpe et al., 2006)

GE (entrepreneur) Learning from failure; learning as a lived experience

A qualitative study of 9 entrepreneurs

Individual

Cope and Watts (1, 6)

2000 UK, UK IJEB&R Individual learning *None given GE (entrepreneur) Experiential learning, and three levels of individual learning (Burgoyne & Hodgson, 1983), analogous to single-loop, situation-specific single-loop, and double-loop learning or 'learning how to learn’

A qualitative study based on longitudinal case studies of six small business owners / practicing entrepreneurs; data was collected through unstructured interviews

Individual

Corbett (7, 15) 2005 US ET&P (Special Issue)

Experiential learning *None given GE (primarily identification / recognition)

Experiential learning n/a Individual

Corbett (b, 3, 7) 2007 US JBV Experiential learning None given GE (discovery) Experiential learning A quantitative study based on a mailed survey of 380 individuals belonging to Colorado-based businesses

Individual

Corbett, Neck and DeTienne (a, b)

2007 US, US, US ET&P Entrepreneurial cognition (and organisational learning)

*None given EE (large firms) Organisational learning (learning from failures)

A qualitative study based on 11 firms with radical innovation programs tracked longitudinally over 3 years; 246 interviews conducted

Individual

Covin, Green and Slevin (3, 6)

2006 US, US, US ET&P Organisational learning as one of the two components of firm strategising

None given EE (medium/large firms)

Organisational learning from strategic failures

A quantitative study based on a postal survey of medium-to-large strategic business units of 110 US manufacturing firms

Firm

59

Deakins and Freel (7)

1998 UK, UK The Learning Organization

Organisational learning

*None given EE (small/medium firms)

Experiential learning, external learning, learning by doing; routines adaptation (internal search), and trial and error (external search); collective learning

A qualitative study based on four case studies of interviews with entrepreneurs

Firm

Dencker, Gruber and Shah. (3, 6, 9, 10, 16)

2009 US, Switzerland, US

Organization Science

Population ecology None given SE Path dependent; adapting routines (experiential learning)

A mixed methods study based on 15 in-depth qualitative interview and 436 surveys with firms

Firm

Dimov (b, 6, 7) 2007 US ET&P Experiential learning and intuiting and interpreting from the 4I framework

*None given GE (development - we liken to exploration)

Experiential learning; intuiting and interpreting involved in individual learning; convergent and divergent learning styles

A quantitative study based on an online experiment on 95 MBA and executive MBA students

Individual

Dutta and Crossan (1, 5, 6, 8, 9, 10)

2005 Canada, Canada

ET&P (Special Issue)

Organisational learning

*None given GE (recognition and development/ exploitation)

Organisational learning (intuiting, interpreting, integrating and institutionalising)

n/a Individual

Erikson 2003 Norway / US Journal of Small Business and Enterprise Development (JSB&ED)

Social cognitive theory

*None given SE Experiential learning n/a individual

Fang, Tsai and Lin (1, 6, 11, 16)

2010 Taiwan, Taiwan, Taiwan

International Small Business Journal

The knowledge-based view of the firm

*EL is implicitly defined as “inherently socially and cognitively interactive learning processes, through which knowledge is generated, articulated and distributed.” (p.92)

SE Interorganizational learning

A quantitative study of 101 entrepreneurial firms in business incubators

Firm

Franco and Haase (b, 3, 5, 7, 14)

2009 Portugal, Germany

JSB&ED To propose a conceptual model of EL as a never-ending, dynamic learning cycle

*EL is implicitly defined as ' learning is what informs the entrepreneur's quest for new opportunities.' (p.634)

GE (entrepreneur) Individual, group, organisational

n/a Individual

García-Cabrera and García-Soto (7)

2009 Spain, Spain Journal of Entrepreneurship

Cognitive approach None given GE (recognition and development/ exploitation)

Experiential learning A qualitative study based on a case study of a single firm

Firm

Gruber,, MacMillan and Thompson (4, 10, 13)

2008 Switzerland, US, US

Management Science

Learning and innovation theory and resource-based theory

None given SE Experiential learning and exploratory learning

A quantitative study based on surveys with 142 firms and secondary data on performance

Firm

60

Harrison and Leitch (b, 1, 2, 3, 10, 14, 15)

2005 UK, UK ET&P (Special Issue)

Organisational learning

*None given GE (editorial for special issue)

Organisational learning n/a n/a

Holcomb, Ireland, Holmes and Hitt (a, b, 7)

2009 US, US, US, US

ET&P Entrepreneurial learning and cognitive theory

*EL is explicitly defined as “the process by which people acquire new knowledge from direct experience and from observing the behaviors, actions and consequences of others; assimilate new knowledge using heuristics to confront discrepancies that are common with information acquired in uncertain contexts; and organize assimilated knowledge by linking it with preexisting structures” (p.172)

GE (entrepreneur) Experiential and vicarious learning

n/a Individual

Honig (9, 11) 2001 Israel ET&P Organisational learning

None given SE EE (unspecified)

Strategic (organisational) learning consisting of discovery, knowledge diffusion and informed action

A quantitative study of 283 individuals in Sweden; interviews were used to screen the sample, before the postal survey

Individual

Hughes, Hughes and Morgan (10)

2007 UK, UK, UK British Journal of Management

Configuration theory None given SE Exploitative learning A quantitative study of 211 emerging high-tech firms in the UK; data were collected through a mailed survey

Firm

Huovinen and Tihula (b, 7)

2008 Finland, Finland

IJEB&R Experiential learning and cognition

*EL is explicitly defined as 'a continuous process leading to the development of knowledge required for starting and managing a firm (Politis, 2005).' (p.155)

SE Experiential learning; knowledge transformation

A qualitative study based on a case study of one portfolio entrepreneur through interviews and written descriptions of his career

Individual

Jones and Macpherson (2, 3, 6, 10, 16)

2006 UK, UK Long Range Planning

Organisational learning (4I framework)

*None given EE (unspecified) Inter-organisational learning

A qualitative study based on three case studies of independent SMEs

Firm

Karataş-Özkan (a, b)

2011 UK Entrepreneurship & Regional Development

A process-relational perspective of entrepreneurship; social constructionist

*None given SE Relational learning A qualitative study based on a single case study of a venture team consisting of 5 nascent entrepreneurs

Individual and team

Kreiser (a, 3, 6, 10, 14, 16)

2011 US ET&P Dynamic capabilities None given GE (unspecified) Acquisitive learning, experimental learning

n/a Firm

Lamont 1972 US Journal of Small Business Management

Experiential learning *None given SE Experiential learning A quantitative study based on financial analyses of 24 technology-based spin-offs

Individual

61

Lant and Mezias (1, 4, 9, 12, 13)

1990 US, US Strategic Management Journal

Organisational learning theory was used to conceptualise entrepreneurship

None given EE (unspecified) Experiential learning at the organisational level

A simulation study of 16 firm types

Firm

Lee and Jones (7) 2008 UK, UK International Small Business Journal

Social capital and communication theory

*None given SE Experiential and transforming experience into action

A mixed methods study based on interviews with 6 entrepreneurs

Individual

Lee and Williams (2, 8, 10, 15)

2007 UK, The Netherlands

Journal of World Business

Social community / Communities of practice

None given EE (MNCs) Learning-in-working n/a Entrepreneurial community

Lévesque, Minniti and Shepherd (a, b, 3, 6, 9)

2009 Canada, US, US

ET&P Experiential, vicarious learning, and decision theory

*None given GE (entrepreneur) Experiential and vicarious learning

n/a Individual

Lumpkin and Lichtenstein (1, 2, 3, 4, 5, 6, 10, 14)

2005 US, US ET&P (Special Issue)

Organisational learning

*None given GE (recognition) Organisational learning n/a Firm

Miller (a, 9, 10) 2012 US Strategic Entrepreneurship Journal

Institutional theory, organisational theory

*EL is explicitly defined as “the learning engaged in by entrepreneurs during their pre-formation organizing activities that becomes embedded and implemented in the structures and practices of the ventures they found.” (p.62).

GE (unspecified) Superstitious learning A quantitative analysis of 2,560 US hedge fund management companies across 178,426 observed monthly spells

Firm

Minniti and Bygrave

2001 US, US ET&P Experiential learning and economics

*EL is implicitly referred to as 'how entrepreneurs accumulate and update knowledge' (p.8)

GE (entrepreneur) Experiential learning n/a Individual

Morris, Kuratko, Schindehutte and Spivack (b)

2011 US, US, US, US

ET&P Affective events theory

None given GE (entrepreneur) Experiential learning; learning as a lived experience

n/a Individual

Mulder, Lans, Verstegen, Biemans and Meijer

2007 The Netherlands, The Netherlands, The Netherlands, The Netherlands

Journal of Workplace Learning

None given *None given EE (small firms) No explicit type of learning given (a number of entrepreneurial learning activities stated)

A mixed methods study basedon interviews and competence assessments with ten small business owners

Individual

Newbert 2005 US Journal of Small Business Management

Dynamic capabilities None given SE Trial and error learning (from prior new firm formation experience)

A quantitative study based on a survey of 327 entrepreneurs

Individual

62

Nicholls-Nixon, Cooper and Woo (1)

2000 Canada, US, US

JBV Strategy and managerial cognition

None given SE Trial and error learning A quantitative study based on a questionnaire to 454 firms

Firm

Parker (b) 2006 UK JBV Economics and experiential learning

*EL is implicitly referred to as “… what entrepreneurs learn about, how they learn, and why they learn.” (p.3)

GE (entrepreneur) Exploitation of new information

A quantitative study based on face-to-face questionnaire interviews of 716 self-employed Britons

Individual

Petkova (a, b, 4, 10)

2009 US International Entrepreneurship and Management Journal

Entrepreneurship, organisational learning, psychology

*None given GE (entrepreneur) Learning from performance errors (experiential)

n/a Individual

Pittaway and Thorpe (a, b, 15, 6, 7, 8)

2012 US, UK Entrepreneurship & Regional Development

Entrepreneurial learning

*None given GE(unspecified) Cope's EL framework consisting of reflective learning, situated learning, self-imposed or external transformative learning, double-loop learning, proactive or reactive learning, etc.

n/a Individual

Politis (3, 7, 10, 16)

2005 Sweden ET&P (Special Issue)

Experiential learning *EL is implicitly defined as 'the process of entrepreneurial learning does not necessarily follow a predetermined sequence of steps according to Kolb's (1984) four-stage learning cycle, but rather can be conceived as a complex process where entrepreneurs transform experience into knowledge in disparate ways.' (p.408)

GE (entrepreneur) Experiential learning n/a Individual

Politis (b) 2008 Sweden JSB&ED None given *None given SE Experiential learning; Trial and error learning

A quantitative study based on 231 entrepreneurs surveyed by mail

Individual

Politis and Gabrielsson (b, 1, 4, 5, 7)

2009 Sweden, Sweden

IJEB&R Experiential learning *None given SE Experiential learning A quantitative study based on 231 entrepreneurs surveyed by mail

Individual

Rae (7) 2000 UK IJEB&R Personal theory (practical theory)

*EL is implicitly defined as 'When learning is applied to the concept of entrepreneurship, it is concerned with learning how to recognise and act on opportunities, how to organise and manage ventures, and so on. Entrepreneurial learning is taken to mean learning to work in entrepreneurial ways.' (p.151)

GE (entrepreneur) Learning as a sensemaking process

A qualitative study based on life story interviews of 13 entrepreneurs

Individual

63

Rae (b, 7, 15) 2005 UK JSB&ED Social theory of learning

*EL is explicitly defined as 'learning to recognise and act on opportunities, and interacting socially to initiate, organise and manage ventures' (p.324)

GE (entrepreneur) Contextual learning A qualitative study based on multiple life story interviews with 3 entrepreneurs over 2 years

Individual

Rae (a, b, 7, 15) 2006 UK Technology Analysis & Strategic Management

Social theory of learning

*EL is explicitly defined as 'learning to recognize and act on opportunities, through initiating, organizing and managing ventures in social and behavioral ways.' (p.40)

SE Experiential learning, work-based learning

A qualitative study based on 10 case studies of entrepreneurs

Individual

Rae and Carswell (7)

2001 UK, UK JSB&ED Social constructionist

*EL is explicitly defined as 'how people construct new meaning in the process of recognizing and acting on opportunities, and of organizing and managing ventures.' (p.150)

GE (entrepreneur) Experiential learning A qualitative study based on 13 in-depth semi-structured life story interviews with entrepreneurs

Individual

Ravasi and Turati (b, 3, 4, 5)

2005 Italy, Italy JBV Entrepreneurial cognition (and organisational learning)

*EL is implicitly defined as 'The learning process that occur as entrepreneurs accumulate and organize knowledge and information within (i.e. Van de Ven and Polley,1992; McGrath, 1995) and across developmental efforts (Minniti & Bygrave, 2001)' (p.139)

EE (small firms) Exploratory and generative learning

A qualitative study of two developmental projects aimed at exploring new business opportunities within the same organisation; data was collected through semi-structured interviews

Project

Rerup (4, 10) 2005 Canada Scandinavian Journal of Management

Behavioural learning and economics

None given GE (discovery and exploitation)

Experiential learning n/a Individual

Rhee, Park and Lee (1, 6)

2010 South Korea, UK, UK

Technovation Organisational learning (learning orientation)

None given EE(small/medium firms)

Learning orientation A quantitative study of 333 technology-based SMEs in South Korea

Firm

Sanz-Velasco 2006 Sweden IJEB&R Entrepreneurship and organisational learning

*None given GE (discovery and development)

Learning from prior knowledge

A qualitative study based on 20 interviews with start-up founders and managing directors

Individual

Sardana and Scott-Kemmis (a, b, 1, 6, 8, 14)

2010 Australia, Australia

Journal of Small Business Management

None given *EL is explicitly defined as “the process by which entrepreneurs develop skill and competency through experience and vicarious experience.” (p.442).

SE Aggregate (experiential) learning

A quantitative study of 32 entrepreneurs (including 7 from Indian and 25 from Australia)

Individual

Schildt, Maula and Keil (3, 4, 10, 16)

2005 Finland, Finland, Canada

ET&P (Special Issue)

Organisational learning

None given EE (large firms) Explorative and exploitative learning; inter-organisational learning

A quantitative study of 110 largest public US corporations, using published secondary data

Firm

Shepherd and Kuratko

2009 US, US Business Horizons None given *None given EE (unspecified) Learning from failure n/a Individual

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Shepherd, Covin and Kuratko (2, 10)

2009 US, US, US JBV Complement social cognitive theory with psychological theories on grief and coping

None given EE (unspecified) Learning from failure n/a Individual

Sirén, Kohtamäki and Kuckertz (3, 4, 6, 9, 10, 16)

2012 Finland, UK, Germany

Strategic Entrepreneurship Journal

Strategic entrepreneurship

None given EE (micro/small/ medium/large firms)

Strategic learning A quantitative study of 210 software firms in Finland

Firm

Stokes and Blackburn

2002 UK, UK JSB&ED None given None given EE (small firms) Experiential learning A mixed methods study based on 20 interviews with advisors, a postal survey of 387 owner-managers and 20 interviews with owners-managers

Individual

Sullivan (7, 14) 2000 UK IJEB&R Experiential learning and organisational learning

*None given SE Experiential learning; organisational learning (double-loop learning)

A mixed methods study; no details given.

Individual

Sundbo (1, 14) 1996 Denmark Technovation Resource-based view

None given EE (unspecified) Organisational learning A qualitative study based on case studies of 21 Danish service firms and 7 manufacturing firms; in total 96 interviews plus a survey

Firm

Taylor and Thorpe (7, 8)

2004 UK, UK JSB&ED Social constructionist and activity theory

*None given EE (small firms) Learning through co-participation (socially constructed)

A qualitative study based on 6 case studies using semi-structured interviews and the critical incident technique with entrepreneurs

Individual

Thorpe, Gold, Holt and Clarke. (2, 8)

2006 UK, UK, UK, UK

International Small Business Journal

Constructionist theory of learning; cognition

*EL is implicitly defined as 'the ability to take the routines by which people typically make sense of their world (Starbuck, 1983) and to change them in some arresting manner.' (p.237)

GE (entrepreneur) Socially embedded learning

A qualitative study using an e-postcard methodology to conduct email interviews on 44 entrepreneurs

Individual

Voudouris, Dimitrators and Salavou (b, 1, 5, 6, 10, 14)

2010 Greece, Greece, Greece

International Small Business Journal

Entrepreneurship *EL is explicitly defined as “a continuous process leading to the development of knowledge required for starting and managing a venture (Politis, 2005).” (p.239)

SE Individual and team learning

A longitudinal, qualitative case study of a Greek ICT firm

Firm

Wang (a, 1, 5, 6, 10, 14)

2008 UK ET&P Organisational learning theory was used to conceptualise entrepreneurship

None given EE (medium-to-large firms)

Organisational learning orientation, adaptive and generative learning

A quantitative study of 213 medium-to-large UK firms based on a mailed survey

Firm

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Wang and Rafiq (a, 1, 3, 6, 7, 10, 14)

2009 UK, UK European Journal of Innovation Management

Organisational learning

*None given EE (unspecified) Convergent, divergent; individual, organisational; generative, adaptive

n/a Firm

Westhead and Wright

2011 UK, UK International Small Business Journal

Entrepreneurship *EL is implicitly defined as “the process by which people acquire, assimilate, and organize newly-formed knowledge with pre-existing structures” (Holcomb, 2009, p.168)

GE (unspecified) Learning from past business / entrepreneurial experience (experiential learning)

n/a Individual, Firm

Young and Sexton (2, 8, 10, 14)

2003 US, US Journal of Entrepreneurship

None given *EL is explicitly defined as 'the variety of experiential and cognitive processes used to acquire, retain and use entrepreneurial knowledge.' (p.156)

GE (entrepreneur) Self-directed, double-loop learning

A qualitative study based on interviews with 10 entrepreneurs

Individual

Zahra, Abdelgawad and Tsang (1, 6)

2011 US, Spain, US Journal of Management Inquiry

Organisational learning

None given EE (MNCs) Learning, unlearning, metalearning or learning to learn

n/a Firm

Zhao, Li, Lee and Chen (a, 1, 3, 5, 6 , 10, 14, 16)

2011 China, China, US, China

ET&P Organisational learning

None given EE (small/medium/ large)

Experimental learning, acquisitive learning

A quantitative study of 607 Chinese manufacturing firms

Firm

Notes to Appendix 1: *Articles that explicitly use the term ‘entrepreneurial learning’. aArticles that cite Harrison and Leitch (2005); 14 out of 43 articles published after 2005, barticles that cite Minniti and Bygrave (2001); 23 out of 61 articles published after 2001. 1Articles that cite Argyris and Schön (1978) (21 articles), 2articles that cite Brown and Duguid (1991) (8 articles), 3articles that cite Cohen and Levinthal (1990) (16 articles), 4articles that cite Cyert and March (1963) (10 articles), 5articles that cite Fiol and Lyles (1985) (11 articles), 6articles that cite Huber (1991) (22 articles), 7articles that cite Kolb (1984) (20 articles), 8articles that cite Lave and Wenger (1991) (8 articles), 9articles that cite Levitt and March (1988) (9 articles), 10articles that cite March (1991) (22 articles), 11articles that cite March and Olsen (1975) (2 articles), 12articles that cite March and Olsen (1976) (2 articles), 13articles that cite March and Simon (1958) (3 articles), 14articles that cite Senge (1990) (16 articles), 15articles that cite Wenger (1998) (5 articles), and 16articles that cite Zahra and George (2002) (8 articles).

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Appendix 2. The Rationale for the Inclusion and Exclusion Criteria

The rationale for our inclusion criteria is as follows. First, we set our search boundary

within academic journal articles. Books such as Harrison and Leitch (2008) were excluded

because they were a collection of research articles which are also published as journal

articles. Additionally, the prevalent usage of electronic journal databases has considerably

improved the accessibility, dissemination and impact of journal articles compared with books

and chapters. Working papers were also excluded because of insufficient peer review process.

Second, we included academic journal articles listed in the Association of Business

Schools (ABS) Academic Journal Quality Version 4 by Subject Area (Kelly et al. 2010). The

ABS Academic Journal Guide was used because it: (a) indicates a level of quality for the

journals included; (b) provides a useful method of limiting the review which could otherwise

be overwhelming (Thorpe et al. 2006; Pittaway et al. 2004); and (c) covers the social sciences

thereby including the key disciplines, fields and sub-fields within which business and

management research is published (Kelly et al. 2010). While the ABS Guide helps to define

the search boundary, a potential drawback is that any relevant articles published in non ABS-

listed journals would not have been included in the literature search. To mitigate this

potential risk, we used Google Scholar search to triangulate our search (N.B. see Methods

section).

Third, we focused our search in the business and management discipline only, to

generate articles that were most relevant to EL in the business and management context.

Whilst other disciplines, such as psychology and sociology may have also published articles

on learning, the possibility of identifying the most relevant articles on EL in these disciplines

is small, given the focus of those journals. Therefore, to limit our search to articles that were

most relevant to EL in the business and management, of the 22 categories (a total of 821

journals) listed in the ABS guide we selected ‘Entrepreneurship and Small Business

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Management’ as the primary source of our literature search. As our secondary literature

sources, we selected ‘General Management’, ‘Strategic Management’, ‘Organization

Studies’, ‘Innovation’, and ‘Management Development and Education’ as these categories

also include journals that occasionally publish entrepreneurship research. To increase

coverage of the journals that were searched and to ensure that the most relevant articles were

included in the study, we also selected journals from additional Subject Areas. These

included the Journal of International Business Studies and Journal of World Business from

the International Business and Area Studies category; the Journal of Business Research from

the Marketing category; Management Science and Omega: The International Journal of

Management Science from the Operations Research and Management Science category; and

Research Policy and Industrial and Corporate Change from the Social Science category.

Fourth, within all of the above categories of journals, we conducted searches using the

electronic databases Business Source Complete, Science Direct, JSTOR, and Wiley Online

Library, covering the period up to and including August 2012. We searched the Title and

Abstract fields using the primary Boolean search terms of ‘entrepreneur* AND learn*’, and

the secondary search term of ‘opportunity AND learn*’ to identify all articles within our

conceptual boundaries. These search terms were sufficiently inclusive to capture articles

within our conceptual boundaries, and exclusive enough to eliminate less relevant articles.

This resulted in 158 articles.

Our exclusion criteria were applied to ensure that each article clearly fell in the

conceptual boundaries we set. In particular, we excluded:

(a) 26 articles that primarily focused on entrepreneurship but had little connection to

learning. For example, Gartner et al. (2006) was excluded, because it provided only a

general review of entrepreneurship without any substantive discussion on EL,

although it contained the search terms within our search boundaries;

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(b) 13 articles that primarily focused on learning but not in an entrepreneurial context.

For example, Moray and Clarysse (2005) dealt with how a public research

organisation learns, rather than EL;

(c) 13 articles that primarily focused on learning in the contexts of entrepreneurship

education, teaching and training. For example, Pittaway and Cope (2007) studied how

students learn in classrooms, rather than learning in the real-life entrepreneurial

context;

(d) 6 articles that primarily focused on the process of innovation or new product

development rather than entrepreneurship (e.g. Abetti 1997);

(e) 5 articles that focused on the internationalisation process (e.g. De Clercq et al. 2005);

(f) 4 articles that focused on technological learning rather than learning in the

entrepreneurship process (e.g. Carayannis 1998);

(g) 3 articles that focused on how investors learn (e.g. De Clercq and Sapienza 2005);

(h) 3 articles that focused on self-employment, and the management of a small business

(e.g. Deakins et al. 2002);

(i) 3 articles that focused on cognition rather than learning (e.g. Baron 2007);

(j) 2 articles that focused on the methodology to study entrepreneurial learning. For

example (e.g. Johansson 2004);

(k) 1 article that touched on both entrepreneurship and learning as part of a review, but

provided no substantive discussion on either area (i.e. Hakala 2011).

(l) 1 article that focused on organisational change (i.e. Kharbanda and Jain 1997);

(m) 1 article that focused on the social order of the firm (i.e. Downing 2005);

(n) 1 article that focused on a practitioner-based approach (i.e. Brush 2008);

(o) 1 article that focused on an economic model (i.e. Cressy 1992).